WTI crude futures break out of a squeeze to the downside


October 2020


Alex Cole

WTI crude front month futures have fallen far and fast in the current session to the tune of almost 4% as price was turned away by the overhead supply around 41.
This move has triggered a low risk re-entry signal (red circle) into the "NoGo" trend that has been in place for several weeks. This comes as the GoNoGo Oscillator breaks out of a strong GoNoGo Squeeze (climbing grid in lower panel) to the down side. This, after riding the zero line for an extended period of time suggests that a further price move down could be significant.